Name of the Project
Penny gold project.

Location
South-east of Mt Magnet, in Western Australia.

Project Owner/s
Ramelius Resources.

Project Description
A feasibility study has determined that metal­lurgical recovery will increase from 92% in the June 2020 prefeasibility study (PFS) to 95%, increasing gold production from 230 000 oz to 238 000 oz.

The project has an initial mine life of 3.8 years.

The initial the focus will be on excavating a 736 000 bcm cutback on the existing Penny West pit to facilitate portal development in fresh rock from a position in the pit that is safely accessible.

The Penny North underground mine will be accessed from the Penny West pit and will, ultimately, be mined to about 315 m below surface.

Ore from the Penny project will be processed through the Mt Magnet processing plant – a conventional carbon-in-leach/carbon-in-pulp gold plant, with single-stage crushing, primary semiautogenous grinding milling in closed-circuit with a pebble crusher and secondary closed-circuit ball milling part of an overall feed blend.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of A$301-million and an internal rate of return of 240%, at a gold price of A$2 300/oz.

Payback is estimated at 26 months.

Capital Expenditure
The project’s upfront capital cost has increased from A$23.5-million in the June 2020 PFS to A$34.5-million in the feasibility study.

Planned Start/End Date
Production is expected to start in 2023.

Latest Developments
Ramelius has reported that the Penny project remains on track for ore production at the beginning of 2023, with 2022 used to complete surface and underground development work.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Ramelius Resources, tel +61 8 9202 1127 or email ramelius@rameliusresources.com.au.